How predictive analytics is shaping fintech

2 August 2018:

The banking and fintech sectors have seen major technological innovations over the past few years, with concepts such as big data or blockchain claiming that they can revolutionize the way institutions and consumers handle money. But data is useless without analytics to draw conclusions from it, and the rise of predictive analytics portends to change how fintech does business. Fintech with new predictive analytics technology can give customers an individualized experience which caters to their unique interests and keeps them safe.

Defining predictive analytics

Before discussing the benefits of predictive analytics, we should understand how it does things differently. Banks and businesses have always been using data to predict future trends, and so predictive analytics is hardly a completely revolutionary idea.

Predictive analytics are better, not because they are completely new, but because they promise more accurate results. As CIO notes, new technologies such as data mining, big data, and machine learning lets organizations more easily discover and exploit patterns to detect new risks and opportunities. Organizations can create models which rely on data in the present, and extrapolate the data with modeling techniques to have a better idea of what will happen in the future. More data and better analysis leads to better predictions.